Qualifications For Perkins Loan
The Federal Perkins Loan is a resource available to students who are pursuing a degree and experiencing financial difficulties that impede on their ability to pay for their tuition or other education-related expenses. This loan is disbursed to an estimated 1,700 schools throughout the U.S. Since each school receives a different amount of Perkins Loan funding, income eligibility limits vary school to school.
Students who have a financial need for a Perkins Loan should find out if their respective school offers it. If the student’s school offers the loan and if the student has filled out their FAFSA form, they can apply for the Perkins Loan.
The Perkins Loan can help undergraduate students to cover up to $5,500 of education-related expenses per year, or $27,500 of school costs over the course of an entire undergraduate program. If a graduate student is interested in receiving this loan, he or she can be awarded an amount up to $8,000 per year or $60,000 over the course of their entire graduate degree program (the latter amount includes money that may have been borrowed during the student’s undergraduate program).
The interest rate on the Perkins Loan is only 5 percent, which is typically viewed as a competitive interest rate for an education-related loan. Because of this, a large number of students pursue a Perkins Loan each year. Since the competition is so high for this loan, it is typically only given to those who demonstrate the most financial need and otherwise qualify for the loan.
A student should examine the qualifications for the Perkins Loan before considering applying for the loan. In order to apply for and be granted the Perkins Loan, a student must meet the following qualifications:
- Be a U.S. citizen
- Have a high school diploma, GED, or a passing score on an approved ATB test
- Be an undergraduate, graduate, or professional student who has a demonstrated financial need related to the expenses of your education
- Have part-time or full-time enrollment as a student in your school
- Attend a school that participates in the Perkins Loan program
In addition, the income eligibility requirements for the Perkins Loan vary by school, so you should find out what the specific income eligibility requirements are for your specific school and then proceed to apply if you find that your income qualifies you for eligibility.
Once a student has been approved for a Perkins Loan, they can expect a payment to be made. Perkins Loan funds are typically applied to a student’s tuition, room and board, and other school fees by the school directly to the student’s account. If there is a remaining balance after this has been done, the school will typically give the student a check for the difference. This money delivered to the student by check can then be used for other expenses that are incurred because of school. This might include supplies, equipment, books, utilities or rent where the student resides, food, transportation, or any other reasonable living expenses that are part of a student’s overall college-related costs.
If a student needs to cancel the Perkins Loan, he or she can do so before the money is disbursed. If a student is having difficulty repaying a Perkins Loan after finishing school, loan forgiveness is available to some students.